Minimum period 1 year and maximum period 5 years only. On maturity deposit can be renewed.

FCNR deposits can be opened only in the form of Term Deposit. Recurring deposit cannot be opened.

• Foreign inward remittance
• Travellers cheques or foreign currency tendered by the account holder personally
• Transfer from existing NEW or FCNR deposits

• Interest on the deposits accepted shall be paid on the basis of 360 days to a year
• Interest on FCNR deposits shall be calculated as below:
  
  • For deposits upto one year, at the applicable rate without any compounding effect.
  • For more than 1 year, at intervals of 180 days and thereafter for remaining actual number of days. May be compounded.

Banks may allow premature withdrawal of deposits at its discretion. If withdrawn before completion of one year no interest is payable. If completed minimum period, then for premature withdrawal, penalty will be charged.

The banks may, at its discretion renew and overdue NRE or FCNR deposit or a portion thereof provided the overdue period from the date of maturity till the date of renewal (both days inclusive), does not exceed 14 days and at the time of renewal banks are required to apply the rate prevailing on the date of renewal or on the date of maturity whichever is lower.

In case the overdue period exceeds 14 days, banks are free to fix their own rate for the overdue period if the entire amount or a part thereof is kept as a fresh deposit.

The depositor who returns to India for good may be allowed to continue the deposit till maturity of the deposit at the contracted rate of interest, if desired. However, except the provisions relating to rate of interest and reserve requirements as applicable to FCNR (B) deposits, for all other purposes such deposit would be treated as resident deposits from the date of return of the account holder to India. Premature withdrawal of such deposits shall be subject to penal provisions of the scheme.

The depositor may convert his deposits into RFC accounts. If the FCNR deposit is converted into RF account, then penalty clause is not applicable.

Banks may pay interest at its discretion at the time of conversion of FCNR (B) account into RFC or Resident Rupee account, even if the same has not run for a minimum period of 1 year, subject to the condition that the rate of interest should not exceed the rate payable on SB deposit held under RFC Account scheme.